Works Ministry mulls proposal to check ‘Ali Baba’ practice

KUCHING: The Works Ministry is considering setting up a monitoring unit which could spell the end of the ‘Ali Baba’ business practice.

Its minister Baru Bian said the proposed unit was one of the 30 proposals forwarded to him following a dialogue session with a group from Sarawak calling themselves ‘genuine contractors’ at the Construction Industry Development Board (CIDB) Sarawak headquarters yesterday.

Speaking to reporters after the dialogue, he said he is looking forward to meet Public Works Department (JKR) Sarawak to see if the proposal can be realised for the state.

“I agree with the suggestion because it was a good one. ‘Ali Baba’ (business practise) is quite widespread not only in Sarawak but also nationwide.

“For us in the new (federal) government, we look at this seriously. Prime Minister Tun Dr Mahathir Mohamad has recently told Bumiputera businessmen to be able to stand on their own feet. ‘Ali Baba’ is not good as it will only weaken Bumiputera contractors,” he said.

The ‘Ali Baba’ business practice refers to an arrangement whereby a Bumiputera-owned company after obtaining a contract from the government sub-contracts it to a nonBumiputera company.

According to Baru, an almost similar unit that monitors Ali Baba practice already existed but it is under a different ministry.

For Sarawak, he said he needs to discuss the matter with JKR Sarawak which is a state agency unlike the other JKRs.

“We want to assist all the Bumiputera contractors not just in Sarawak but the whole of Malaysia because there have been some abuses in the system. During the dialogues, it was proposed that Bumiputera contractors, upon procurement of projects or tender, must sign an ‘Aku Janji’ (agreement) not to outsource their work to other contractors.

On another matter, he clarified that the federal government had no plans yet to abolish tolls in the Peninsula contrary to what had been reported in the media.